Copper Open Interest Reaches Lowest Level in Almost Four Months

Jan. 2 (Bloomberg) -- Copper traders may have bought
futures to close out bets on a falling market as the number of
contracts outstanding touched the lowest in almost four months
at the same time that prices retreated.

Open interest in London Metal Exchange copper futures came
to 396,808 contracts, the lowest level since Sept. 4, as of Dec.
28, LME figures showed. That was a drop of 10,254 lots from a
week earlier. Prices rose 0.7 percent in the period. Each
contract represents 25 metric tons of the metal used in pipes
and wiring.

A combination of lower open interest and higher prices
usually signals short-covering, or buying of a commodity to
reverse a wager on a decline, according to Macquarie Group Ltd.

Following are changes to market open interest for both LME
members and their clients for the exchange’s six main
industrial-metals futures in the week ended Dec. 28. The figures
were compiled by the bourse.